Caledonia Mining Corporation (CMCL)

[NYBob]

100-YEAR CHART: Gold price vs Dow Jones shows metal still cheap -
Frik Els | October 15, 2014 -



This 100-year chart of the blue-chip Dow Jones Industrial index
from Macrotrends tracks how many ounces of gold it would take
to buy the Dow over any given month.

Previous cycle lows have been 1.9 ounces in February of 1933 and
1.3 ounces in January of 1980 when gold in inflation-adjusted
terms hit an all-time high of roughly $2,400 an ounce.

When the nominal price of gold hit a record high above $1,900
in August 2011 the ratio was 6.4.

On Wednesday the Dow-Gold ratio was at 12.9 compared to
highs around 40 between mid-1999 when gold reached
lows of $250 an ounce and mid-2001.



While gold and the dollar usually moves in opposite directions
gold recent strength has been into the teeth of a stronger dollar.

Gold's gains may have been greater if not for the rising dollar
as this trader explains.

Despite the strong bounce of the bottom, not everyone is back on board.

The third quarter was the sixth quarter in a row holdings in global
exchange traded funds backed by physical gold were reduced and
September was the worst month for ETF funds since December 2013.

The selling continued into October. Last week 16.2 tonnes flowed
from gold-backed funds, dropping total holdings to 1,662.3 tonnes,
following a 10 tonne reduction in the week to October 3.

Overall gold bullion holdings are now at five year lows and a
whopping 970 tonnes below the record 2,632 tonnes or
93 million ounces reached in December 2012.

http://www.mining.com/chart-gold-price-vs-dow-jones-shows-metal-still-cheap-19417/

https://www.youtube.com/watch?v=JyzXhPD2Itc

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=105715045



Gold imports jump about 5-times in September on global price slide
PTI | Oct 15, 2014, 06.54PM IST

http://timesofindia.indiatimes.com/business/india-business/Gold-imports-jump-about-5-times-in-September-on-global-price-slide/articleshow/44826653.cms
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